Abstract

  
 

References (66)



 
 

Citations (2)



 


 



The Effect of Board Size and Composition on the Efficiency of UK Banks


Sailesh K. Tanna


Coventry University

Fotios Pasiouras


University of Surrey - Surrey Business School; Technical University of Crete; Coventry University - Faculty of Business, Environment & Society; Centre for Financial and Risk Management, Audencia Nantes School of Management; Centre for Governance & Regulations

Matthias Nnadi


Cranfield University - School of Management
February 1, 2008

International Journal of the Economics of Business, 2011, 18 (3), 441-462 (Revised Version)
Coventry University, Economics, Finance and Accounting Applied Research Working Paper No. 2008-05

Abstract:     
We examine a sample of 18 banks operating in the UK between 2001 and 2006 to provide for the first time evidence on the association between the efficiency of UK banks and two important aspects of board structure, namely board size and composition. We first use data envelopment analysis to estimate the technical, allocative, and cost efficiency of banks, and then use Tobit regression to investigate the impact of the board structure on these measures of efficiency. We estimate three specifications, one for each measure of efficiency, where the impact of each board aspect is examined individually and in conjunction with each other. In all the specifications we control for bank size, capital strength and time trends. We find some evidence of a positive association between board size and efficiency which is however not robust across our estimations. The composition of the board has a statistically significant and positive impact on efficiency across all our specifications.

Number of Pages in PDF File: 29

Keywords: Board size, board composition, banks, corporate governance, efficiency, non-executives

JEL Classification: G21, G34

Accepted Paper Series


Download This Paper

Date posted: February 13, 2008 ; Last revised: September 28, 2012

Suggested Citation

Tanna, Sailesh K., Pasiouras, Fotios and Nnadi, Matthias, The Effect of Board Size and Composition on the Efficiency of UK Banks (February 1, 2008). International Journal of the Economics of Business, 2011, 18 (3), 441-462 (Revised Version) ; Coventry University, Economics, Finance and Accounting Applied Research Working Paper No. 2008-05 . Available at SSRN: http://ssrn.com/abstract=1092252

Contact Information

Sailesh K. Tanna
Coventry University ( email )
Coventry
United Kingdom
Fotios Pasiouras (Contact Author)
University of Surrey - Surrey Business School ( email )
Guildford, Surrey GU2 8DN
United Kingdom
Technical University of Crete ( email )
Department of Production Engineering & Management
University Campus
Chania, Crete 73100
Greece
Coventry University - Faculty of Business, Environment & Society
Priory Street
Coventry, CV1 5FB
United Kingdom
Centre for Financial and Risk Management, Audencia Nantes School of Management
8 route de la Jonelière, BP 31222
Nantes Cedex 3, 44312
France
Centre for Governance & Regulations ( email )
University of Bath
Bath
Bath, BA2 7AY
United Kingdom
Matthias Nnadi
Cranfield University - School of Management ( email )
Bedfordshire, MK43 0AL
United Kingdom
Feedback to SSRN (Beta)


Paper statistics
Abstract Views: 1,461
Downloads: 491
Download Rank: 26,100
References:  66
Citations:  2

© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright
This page was processed by apollo2 in 2.954 seconds